Dear Ray,
You are an absolute legend, but I think your recent take on real estate is missing a bit of context. I agree with your key points, but I believe the long-term fundamentals for the sector may actually be stronger than they appear—particularly when factoring in the disruptive impact of AI.
My quick thesis is this: AI will radically lower the barriers to entry and costs in almost every service sector. In an extreme scenario, costs could fall by 90% and access improve by 90%. With global money supply essentially fixed in the short term, the value that is no longer constrained by service sector costs will migrate toward scarce resources—most notably, real assets such as real estate and commodities.
Here’s why I think this plays out positively for real estate:
•Scarcity Value: Unlike services, real assets cannot be infinitely replicated. Scarcity vs Abundance
•AI-Driven Demand: Growth in data centres, AI infrastructure, and higher living standards will create sustained demand for specific property types.
•Regulatory & ESG Tailwinds: Environmental changes and ESG requirements will make certain high-quality residential, PBSA, and office assets more desirable.
•Resource-Intensive AI: AI itself will require massive natural resources—energy, rare metals, and the land to house it all.
So while there will be turbulence, I think AI could ultimately increase the strategic value of real estate over the long term—barring, of course, extreme black swan events where analysis itself becomes irrelevant.
@FPL_Invincible1 Feels like you deliberately deceiving your followers.
You are taking value away from mid spots (most valuable in the game) to fwd Watkins - awful team structure guaranteed 4m+ by gwk 6-7
Always good to hear your thoughts. Imo the best voice of the community along with Pras. I tend to agree with you even though I also believe that it only makes sense to go either big on the forwards with Watkins Haaland (no Salah on the flipside) or go cheap 6.5 and 6.0. In between choices seem less optimal.
@Tekyolbilim@RepSchneider Using your own reasoning. There is no such a thing as Ottomans as all of them came from Asia and some people who took the piss from the Byzantium empire.